I was first attracted to RGC last year by their dividend. Earlier this year I took a harder look at them and ended up buying some shares in RL. I really think this is going to be a strong year for movie theaters and RGC seems like the best way to play that. I read through their last earning conference call and looked over their last big SEC filings and had some numbers and stuff written out that I was going to turn into a blog or bigger pitch... but I'm lazy. I like their free cash flow. Their dividend yield is great. I've read some articles where the writers specualte that they didn't think the dividend is sustainable, but after reading in the conference call that the company like to have 4 quarters worth of dividend payments in cash on hand at all times I've decided the authors of those articles are dumb.

But yeah, mainly I just think it's going to be a great year to go out to the movies.

Movie Theaters will slowly got he way of Blockbuster as Home Theater System prices drop and on-demand and streaming makes it easier to order movies at home. Could add other theaters but Regla seems to be seeing a larger drop in reveneues than others and has a high PE ratio and high dividend payout. If they have to cut their dividend in the future it would significantly impact their price.

One of the big news stories this week here in Baltimore was how patrons were lined up for 2 blocks to get into the movie theatres.the main reason for this has been the oppressive heat we've been experiencing this summer.Quite simply put people want to get out of the heat and enjoy air conditioned entertainment.There appears to be no let up in the heat this summer and with the amount of sequels in the theaters this summer, I feel this is a perfect recipe for profits.Throw in the 5% dividend..........get the popcorn!!!

Burning through its cash as of late, Regal also cut its dividend. While that may look bad, it gets worse when you realize that the company has a negative net tangible asset value. Can't look to this company for growth either, in my opinion, as they seem to be scaling back on capital expenditures.